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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To think this budget will finish us off

1000 replies

BurnoutGP · 30/10/2024 22:12

I am a GP Partner of over 20 years. I am now senior partner for the last few years. We have seen year on year below inflation funding increase. With an explosion in demand and massive shift of work from secondary care. We have issues wirh recruitment.
Our partner income is shrinking year on year. We are now always overdrawn and this gets worse every month.
We just cannot soak up the MLW and NI without adequate resource uplift.
I think we will be done. I'm so very tired of the constant battle and the demand and anger while working "part time" 60hr weeks.
We will have to hand back our contract. And we wont be the only one. That will leave one surviving practice in my area.
I'm done.

OP posts:
Thread gallery
10
IDontFeelLikeCooking · 30/10/2024 22:58

I’m so sorry to hear that op. You have my every sympathy. It’s been a very tough day in a long line of tough years.

I’m in a very similar boat. Small ‘professional’ services business. Very deprived area
, with high unemployment and the jobs that are available are low skilled.

I used to take significant pleasure in offer a large amount of professional time offering free services to those in need / charities. With the cost of living crises and significant increases in minimum wage over the last 4 years I’ve had to drastically reduce my charity work to keep the business afloat. Probably 8 hours a week reduced to 8 hours a month.

Disappointing but I still felt able to do my bit by offering jobs to young people and upskilling them. Giving them a ‘trade’ effectively and opportunities to develop professional careers.

Today’s announcement means that the last of the charity work will have to go. I will maintain the gap for those staff paid more than the living wage but at least one junior member of staff will be made redundant. This is the only way I can raise the money. There will be no hiring of young people for the foreseeable future.

To be honest my instinct is to shut up shop and obtain work as employee myself. I’d certainly be personally better off but feel awful about my staff and the jobs they would loose and the fact that they would find it almost impossible to find similar work locally. God knows how long I will be able to hold this position for.

Simply soul destroying.

Julen7 · 30/10/2024 22:58

BIossomtoes · 30/10/2024 22:33

Let’s give it more than three months, shall we?

Damage already done

Unbelooth · 30/10/2024 22:58

BIossomtoes · 30/10/2024 22:33

Let’s give it more than three months, shall we?

Some of us can't. Literally. We cannot now afford to keep employing our staff at the hours they are currently doing.

Because it's not just the rise in minimum wage. It's also the rise in employer's National Insurance contribution.

Rummly · 30/10/2024 22:59

KaleQueen · 30/10/2024 22:54

Yes. Anyone who employs anyone. That’s why it’s called employers NI.

Sure, but I supposed there’d be some sort of public sector carve out. Which a pp has said there is, in fact, though apparently not across the board.

BurnoutGP · 30/10/2024 22:59

TeenLifeMum · 30/10/2024 22:57

I pay my cleaner more than nmw so I think most people would expect a gp to pay employees a living wage.

i am concerned about the impact on small businesses unable to absorb the NI increase, so that would include gp practices.

Edited

It's usually only the very new/young new starters with minimal experience. It's the wage differential as we either need to give them a pay rise or lose them. But it's the NI that will be the killer.
Out of interest how much do you think a GP receptionist earns??

OP posts:
YourAzureEagle · 30/10/2024 23:00

OptimismvsRealism · 30/10/2024 22:55

It's time to get rid of the GP private model and move GPs onto employment contracts with the NHS. If the existing financial deal is so bad they'll jump at the chance... Right?

Edited

Absolutely, Labour wanted to do that back in the 40's when they formed the NHS, first they took over hospitals, then asylums a few years later, but the BMA resisted GPs becoming part of the NHS as they were used to getting paid by patients and wanted to keep the practice model.

But of course it doesn't work well with only one customer, the NHS, nor is it efficient that way. Vertical integration is the way forward for the NHS and that means taking over the GPs practices.

BurnoutGP · 30/10/2024 23:01

IDontFeelLikeCooking · 30/10/2024 22:58

I’m so sorry to hear that op. You have my every sympathy. It’s been a very tough day in a long line of tough years.

I’m in a very similar boat. Small ‘professional’ services business. Very deprived area
, with high unemployment and the jobs that are available are low skilled.

I used to take significant pleasure in offer a large amount of professional time offering free services to those in need / charities. With the cost of living crises and significant increases in minimum wage over the last 4 years I’ve had to drastically reduce my charity work to keep the business afloat. Probably 8 hours a week reduced to 8 hours a month.

Disappointing but I still felt able to do my bit by offering jobs to young people and upskilling them. Giving them a ‘trade’ effectively and opportunities to develop professional careers.

Today’s announcement means that the last of the charity work will have to go. I will maintain the gap for those staff paid more than the living wage but at least one junior member of staff will be made redundant. This is the only way I can raise the money. There will be no hiring of young people for the foreseeable future.

To be honest my instinct is to shut up shop and obtain work as employee myself. I’d certainly be personally better off but feel awful about my staff and the jobs they would loose and the fact that they would find it almost impossible to find similar work locally. God knows how long I will be able to hold this position for.

Simply soul destroying.

That's how I feel. I'm so tired of it. Of trying to keep the service going. Ready to hand the practice back and do something much less stressful.

OP posts:
Morph22010 · 30/10/2024 23:01

Unbelooth · 30/10/2024 22:25

I hear you OP. We run a pub. The uptick in minimum wage, plus the uptick in employer's national insurance contribution, plus all of that being passed on to us from our suppliers as well, is finishing us.

How many employees do you have in your pub on over £5k a year? Employment allowance is going up from £5k to £10.5k so should cover most of the no rise for a small business, unless you are a very large pub with a lot of full time staff

Chonk · 30/10/2024 23:02

Unbelooth · 30/10/2024 22:58

Some of us can't. Literally. We cannot now afford to keep employing our staff at the hours they are currently doing.

Because it's not just the rise in minimum wage. It's also the rise in employer's National Insurance contribution.

Edited

The changes don't take effect until April do they?

Mia85 · 30/10/2024 23:02

Restlessinthenorth · 30/10/2024 22:18

Same. I work in a university, training future healthcare professionals. Our university is already in financial dire straits. The NI increase will compound the imminent job cuts. There will simply not be the staff to give good quality training to the nurses who go and work in our city. Dressing this up as not impacting the individual is simply not true. Many, many of us will feel the repercussions of this

Looks that way https://www.timeshighereducation.com/news/universities-hit-employer-national-insurance-hike-confirmed#:~:text=The%20threshold%20at%20which%20employers,in%20further%20cuts%20and%20redundancies.

Budget national insurance hike ‘costs universities £372 million’

Chancellor goes ahead with 1.2 percentage point increase, hiking staff costs for already cash-strapped institutions

https://www.timeshighereducation.com/news/universities-hit-employer-national-insurance-hike-confirmed#:~:text=The%20threshold%20at%20which%20employers,in%20further%20cuts%20and%20redundancies.

Windchimesandsong · 30/10/2024 23:03

Re the employer NI. I know the government said they wouldn't raise income tax but I think a small increase might be better than the employer NI increase? With the caveat that the extra income tax raised is definitely used to fund the essential public services needed - NHS including GP practices, social services, more council housing asap, supportive benefits system etc. These services are vital both for individuals in need and for the economy (access to timely and effective help reduces the amount of help needed and the period of time help is needed).

AndThereSheGoes · 30/10/2024 23:03

I agree about NMW. Lots of people use these type of jobs as second wages so it's more complicated than giving a salaried person a rise.
I used to work in Tesco which had many perks that are obviously tax and NI free. There was free food, staff discount, anytime free parking, flexible shifts/hours, personal days etc etc etc). It compensated the old £11 wage. Then it went up to £12 last year. An extra 20p and I can see some of the perks being cut.
I can see staff loosing out once they get taxed or reach student loan or universal credit thresholds too.

StatisticallyChallenged · 30/10/2024 23:05

Small business owner, feel your pain. Between NI and min wage we're looking at +10% on staff bill - we don't actually pay nmw, we pay at least real living wage but they go up fairly well in line so it's a moot point. We can't shoulder that without increasing fees for our clients. Which may kill us off - and if we don't we'll just be pumping inflation back up.

ssd · 30/10/2024 23:05

Feelingathomenow · 30/10/2024 22:37

No worries we’re stuck with 5 years of this shit, there will be plenty of other complete fuck ups that will destroy our economy and society what history can judge this shambles of a government on.

Desperate

hereandthere72 · 30/10/2024 23:06

I'm so sorry to hear this op! And yes I agree. All our small surgeries sold out to big companies a few years ago and it's appalling 😔 it's all very well saying you should pay more but how can you without bankrupting yourself or selling out to a bigger company to the detriment of you customers ( In your case patients) I'm afraid that as I see it the government has shown it's true colours. I expect to see many more small companies go to the wall, if we get many more empty buildings in our high street our town is finished!

TeenLifeMum · 30/10/2024 23:06

BurnoutGP · 30/10/2024 22:59

It's usually only the very new/young new starters with minimal experience. It's the wage differential as we either need to give them a pay rise or lose them. But it's the NI that will be the killer.
Out of interest how much do you think a GP receptionist earns??

In nhs terms, I’d expect a gp receptionist to start at £26,530 (bottom of band 4) with more senior/extra responsibilities being on a band 5 - £29,970.

HateMyselfToo · 30/10/2024 23:06

It will ultimately make conditions worse for staff too as employers will look to claw back money in other ways, like removing employee 'perks' whether that be removing complimentary refreshments in staff rooms, cutting back on xmas party budgets, fewer training courses etc. Bigger companies know things like this are a good way of retaining staff, small companies won't have that luxury.

Unbelooth · 30/10/2024 23:07

Morph22010 · 30/10/2024 23:01

How many employees do you have in your pub on over £5k a year? Employment allowance is going up from £5k to £10.5k so should cover most of the no rise for a small business, unless you are a very large pub with a lot of full time staff

Every supplier will be passing their increased costs on to us. And the only way we can pass those costs on is to - our customers. Who cannot pay them. Another pub goes get's shut down.

Unbelooth · 30/10/2024 23:08

Chonk · 30/10/2024 23:02

The changes don't take effect until April do they?

Yes. Believe it or not, businesses do actually look ahead.

BlossomToLeaves · 30/10/2024 23:08

I'm sorry to hear this too. It's one of the things that worried me when I heard that part of the budget.

Is it possible still that the NHS allocation will increase the amount given to general practice, enough to cover this? (if not more?) Will the spring NHS plan change things for GPs? I don't know when the next actual budget is.

I read somewhere also that it wasn't yet clear whether there was going to be some exceptions made for certain employers, and that they were waiting for details on how it might affect the NHS, so maybe there is still hope that it won't apply? I don't know if that's likely though.

I don't think the government realises how much of a crisis there is in general practice, and how worried patients are too, that so many GPs might leave.

Feelingathomenow · 30/10/2024 23:10

Windchimesandsong · 30/10/2024 22:57

It would be far better to lower the cost of living instead of increasing the national minimum wage or employer NI.

More council housing would make a significant difference - and do far more to help people manage than an increased minimum wage.

It would also save the economy billions. Billions is needed for benefits to pay for private rentals (and substandard temporary accommodation). And bad or insecure housing damages health (for example, as a study published in the BMJ noted, private renting is more harmful than smoking).

More council housing of decent quality would mean fewer people needing benefits (saving the economy loads of money) and lower demand on the NHS.

GP practices should have been nationalised when the NHS was formed, it wasn't done to keep the BMA happy. I think now would be a good time to do it.

I agree. Not only because of the NI issue, but also because GP practices being private is one reason why there's so much variation in quality of care between different practices. But I'm not a GP and interested to hear views from GPs on this. Would you support this @BurnoutGP ?

Edited

Absolutely we need to lower the cost of living and need more social housing. We also need to stop the pressure on the UK economy by dealing with illegal immigration (basically the equivalent of the entire population of Stratford upon Avon has illegally come into the UK this year so far on the boats) it’s unsustainable

Gymnopedie · 30/10/2024 23:11

This budget does rather support the idea that Labour think all business owners (regardless of size or business activity) are fat cats sitting on enormous profits that they don't share with their employees or the government.

Chonk · 30/10/2024 23:12

Unbelooth · 30/10/2024 23:08

Yes. Believe it or not, businesses do actually look ahead.

By now did you actually mean April, then? Which is more than 3 months away?

MrsSkylerWhite · 30/10/2024 23:12

Let me try to find my tiny violin. Not.
As I said on a previous, bleating thread: if you can’t afford to pay your staff a decent, living wage then your business is not viable.
Two friends are GP partners. They’re far from poor.

The state should not be topping up the wages of full-time employees.

FinishTheBook · 30/10/2024 23:12

I hear you OP. My friend is in much the same situation as you as a GP partner. She has actually broken down to her husband and then to me tonight saying she can't keep it going as the increased costs are impossible and she is exhausted. If many are feeling this way, it's a disaster for healthcare.

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